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Car service firm Mekonomen warns on profit, European market "abnormally weak"

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Reuters STOCKHOLM
Last Updated : Jan 18 2019 | 12:25 PM IST

STOCKHOLM (Reuters) - Swedish car service firm Mekonomen warned late on Thursday that its fourth quarter profit would land lower than expected, citing "an abnormally weak market" in Europe in the quarter.

The company said it expected to report an adjusted quarterly operating profit (EBIT) of 105-115 million Swedish crowns ($24.40 million), higher than the 103 million profit a year earlier, but far below the mean analyst forecast of 169 million according to Refinitiv estimates.

"We have seen an abnormally weak market throughout Europe in Q4 2018," Mekonomen CEO Pehr Oscarson said in a statement.

"However, we believe that we have retained our market shares and believe in a more stable market going forward, but actions need to be taken and will be presented no later than with the Q4 2018 report on 14 February", Oscarson.

($1 = 9.0155 Swedish crowns)

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(Reporting by Johannes Hellstrom; editing by Johan Ahlander)

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First Published: Jan 18 2019 | 12:11 PM IST

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